Govt pumps P454 million into BPC

source: Mmegi
MBONGENI MGUNI
Staff Writer

The Botswana Power Corporation’s (BPC) precarious operational position will soon be fortified by a P454 million cash injection by its sole shareholder, the Government of Botswana, Business Week has learnt.

The bailout is part of a rescue package for BPC which also includes the recently announced 30 percent electricity tariff hike. The cash-strapped utility reportedly required a 55-percent hike, but with consumers in mind, Government opted to minimise the hike and complement it with the P454 million cash injection.

The bailout is timely as the BPC, weighed down by ballooning costs of imported power, maintenance and generation, has recorded its second net loss in as many years. In addition, the BPC annually incurs the costs of [continue reading]

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